SoundHound AI (NASDAQ:SOUN) Trading 12.6% Higher – Should You Buy?

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price shot up 12.6% on Monday . The stock traded as high as $15.10 and last traded at $15.01. 218,916,405 shares were traded during trading, an increase of 214% from the average session volume of 69,755,192 shares. The stock had previously closed at $13.33.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on the stock. DA Davidson reaffirmed a “buy” rating and issued a $9.50 price target on shares of SoundHound AI in a report on Monday, September 30th. Wedbush restated an “outperform” rating and issued a $9.00 target price on shares of SoundHound AI in a research note on Thursday, September 26th. HC Wainwright boosted their price target on SoundHound AI from $7.00 to $8.00 and gave the company a “buy” rating in a research note on Thursday, November 14th. Barclays reissued a “neutral” rating and issued a $7.00 price objective on shares of SoundHound AI in a report on Wednesday, November 13th. Finally, LADENBURG THALM/SH SH reaffirmed a “neutral” rating and set a $7.00 target price on shares of SoundHound AI in a report on Wednesday, November 13th. Three equities research analysts have rated the stock with a hold rating and four have issued a buy rating to the company’s stock. According to MarketBeat, SoundHound AI presently has a consensus rating of “Moderate Buy” and a consensus price target of $7.64.

SoundHound AI Stock Up 12.6 %

The stock has a market cap of $5.55 billion, a PE ratio of -41.69 and a beta of 3.03. The business has a 50 day moving average price of $6.47 and a 200 day moving average price of $5.35. The company has a quick ratio of 2.58, a current ratio of 2.58 and a debt-to-equity ratio of 0.13.

SoundHound AI (NASDAQ:SOUN) last posted its earnings results on Tuesday, November 12th. The company reported ($0.06) earnings per share for the quarter, beating the consensus estimate of ($0.07) by $0.01. SoundHound AI had a negative net margin of 163.58% and a negative return on equity of 55.58%. The firm had revenue of $25.10 million during the quarter, compared to analyst estimates of $23.02 million. During the same period in the previous year, the firm earned ($0.09) EPS. The business’s quarterly revenue was up 88.7% on a year-over-year basis. Equities research analysts expect that SoundHound AI, Inc. will post -0.38 EPS for the current fiscal year.

Insider Transactions at SoundHound AI

In other news, Director Eric R. Ball sold 50,000 shares of SoundHound AI stock in a transaction that occurred on Thursday, December 5th. The shares were sold at an average price of $12.00, for a total transaction of $600,000.00. Following the sale, the director now owns 451,756 shares of the company’s stock, valued at approximately $5,421,072. The trade was a 9.97 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider James Ming Hom sold 53,891 shares of SoundHound AI stock in a transaction that occurred on Wednesday, December 4th. The shares were sold at an average price of $10.00, for a total transaction of $538,910.00. Following the completion of the sale, the insider now owns 813,193 shares of the company’s stock, valued at $8,131,930. This trade represents a 6.22 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 535,233 shares of company stock valued at $3,801,260 over the last 90 days. Corporate insiders own 12.28% of the company’s stock.

Institutional Investors Weigh In On SoundHound AI

Institutional investors and hedge funds have recently modified their holdings of the company. Kings Path Partners LLC purchased a new stake in SoundHound AI during the second quarter worth about $28,000. International Assets Investment Management LLC purchased a new stake in SoundHound AI during the 2nd quarter worth approximately $31,000. NBC Securities Inc. lifted its holdings in SoundHound AI by 97.8% during the 3rd quarter. NBC Securities Inc. now owns 7,720 shares of the company’s stock worth $35,000 after buying an additional 3,818 shares in the last quarter. Amalgamated Bank boosted its position in SoundHound AI by 108.0% in the 2nd quarter. Amalgamated Bank now owns 9,819 shares of the company’s stock valued at $39,000 after buying an additional 5,099 shares during the period. Finally, Signaturefd LLC grew its stake in shares of SoundHound AI by 27.3% in the second quarter. Signaturefd LLC now owns 10,255 shares of the company’s stock worth $41,000 after acquiring an additional 2,200 shares in the last quarter. Hedge funds and other institutional investors own 19.28% of the company’s stock.

SoundHound AI Company Profile

SoundHound AI, Inc develops independent voice artificial intelligence (AI) solutions that enables businesses across automotive, TV, and IoT, and to customer service industries to deliver high-quality conversational experiences to their customers. Its products include Houndify platform that offers a suite of Houndify tools to help brands build conversational voice assistants, such as Application Programming Interfaces (API) for text and voice queries, support for custom commands, extensive library of content domains, inclusive software development kit platforms, collaboration capabilities, diagnostic tools, and built-in analytics; SoundHound Chat AI that integrates with knowledge domains, pulling real-time data like weather, sports, stocks, flight status, and restaurants; and SoundHound Smart Answering is built to offer customer establishments custom AI-powered voice assistant.